Uber regulations would stifle the transportation free market

U-T Editorial Staff

Last December, the state Public Utilities Commission began regulating online car-sharing hubs such as Uber, which utilize an online platform and smartphones to connect passengers to vehicles. Now the state Legislature is also weighing in. It’s considering two bills that would impose heavy regulations on such companies.

California taxi drivers and insurance companies support bills that would require car-sharing companies to adhere to laws paralleling those for traditional taxi companies and that would mandate around-the-clock primary insurance coverage.

Uber, Lyft and similar companies oppose these measures, saying they decrease market competition and only benefit insurance companies.

They have a point. There is hardly sufficient evidence that more regulation is needed — just anecdotes of questionable relevance. Supporters of the bills should offer better proof that the staunch regulations are actually necessary.

Without such proof, it’s fair to wonder if this legislative push is really about public safety or about attempting to stifle these companies’ competition with taxi companies.

Uber is a San Francisco startup. Instead of being hassled, it should be recognized as exemplary of the entrepreneurial spirit that is the best thing the state economy has going for it.

We hope lawmakers figure this out before California adds to its reputation as the most business-hostile state of all.